A FORMER tile works is being transformed into a new purpose-designed business park, which is expected to create up to 500 permanent jobs.

Malton-based developer S Harrison is embarking on the venture, which is thought to be the first of its kind to the south of York, off the A19 at Escrick, in response to demand for quality office space for small businesses to buy.

Its construction operation, Harrison Construction Ltd, has started work on redeveloping the brown field site, which was formerly the Plasmor Tile Works, and will offer retail and industrial units. The first are expected to be ready by early 2007.

Charles Vyvyan, of Harrison's development team, said: "Many small businesses have the capacity, either through their business reserves of directors' pension schemes, to acquire property as opposed to rent it. But they are finding that, because of professional investors, suitable properties are simply not coming onto the market.

"At Escrick Business Park, we are going some way to alleviate the problem, providing not only office units but light industrial units for sale too."

The project is going ahead with the support of City of York Council, whose planners backed the project, which could provide space for up to 500 permanent jobs.

"The way we are marketing the scheme, we are specifically encouraging owner managed businesses to explore the potential that Escrick has to offer," said Mr Vyvyan.

"Away from the traffic hotspots in and around York, with great access to the motorway network and to Europe via Hull, it looks set to attract significant interest," he said.

Escrick Business Park offers office accommodation from 1,250 square feet up to 57,000 square feet and industrial and warehouse accommodation on a 1.75 hectare (4.3 acre) site.

It will hold about 16 office units and 12 industrial units, although this could change as there is scope for purchases to request the size they need.

S Harrison Group was founded in 1952 by the late Stanley Harrison whose son, Martyn Harrison, is now chairman.

Other major projects undertaken by the group include the construction of 13 units in a seven-year programme on York Science Park, the new Meridian building in York and the new Norwich Union building at Monk's Cross.

Further afield, Harrison is nearing completion on the £50 million redevelopment of Workington town centre in Cumbria and is starting work on an £80 million mixed-use development in Lichfield, while in Sheffield it has about £100 million of work in progress.

Updated: 10:25 Tuesday, March 28, 2006